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UBC Theses and Dissertations

Tenure arrangements for facilitating community forestry in British Columbia 1999

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T E N U R E A R R A N G E M E N T S F O R F A C I L I T A T I N G C O M M U N I T Y F O R E S T R Y IN BRITISH C O L U M B I A by P A U L J O N A T H A N M I T C H E L L - B A N K S BSc.(Hons) Queen's University at Kingston 1983 MBA University of British Columbia 1986 MSc.Pl. University of Toronto 1992 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR IN PHILOSOPHY in THE FACULTY OF GRADUATE STUDY THE FACULTY OF FORESTRY Department of Forest Resource Management We accept this thesis as conforming to the require&stfandard THE UNIVERSITY OF BRITISH COLUMBIA May 1999 © Paul Jonathan Mitchell-Banks, 1999. In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. 1 further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Department of " ^ > ^ £ i = L S ^ S ^ J E ^ O c S ^ p W ^ V ^ G S ^ N ^ V C N The University of British Columbia Vancouver, Canada DE-6 (2/88) ABSTRACT Community forestry is a concept whose time has finally 'come' to British Columbia through a convergence of events including: recommendations from forestry commissions; high profile international conferences and publications on sustainability; increased social awareness of forests and forestry; and greater public pressure for community needs to be addressed. This thesis investigates tenure arrangements to facilitate community forestry in British Columbia. BC forest tenures have evolved over the last century and have timber management biases leading to failures in addressing community forest management concerns. To date, community forestry has not played a significant role in forest management in the province. Community, culture, conflict and planning are highly interrelated concepts and understanding their linkages is essential for successful forest and community planning. Community forestry, which with its long history of success can be an integrated planning tool for sustainable forestry. International community forestry is reviewed, with a particular focus on Sweden which has social and economic similarities to Canada. National and provincial surveys are used to determine the levels of awareness and understanding of community forestry. While offering some advantages, there are limited opportunities to exploit existing tenures due to their industrial focus and continuing policy failures, suggesting a need for new community forest tenures. New community forest tenures offer the opportunity to avoid failures associated with previous tenures and the ability to experiment. Community forestry principles are incorporated with theory, literature and survey information to draft the characteristics of new tenures which offer a more effective and flexible policy vehicle to facilitate community forestry. i i TABLE OF CONTENTS ABSTRACT ii TABLE OF CONTENTS iii LIST OF TABLES ix LIST OF FIGURES xi ACKNOWLEDGEMENTS xii DEDICATION '. xiii CHAPTER I. INTRODUCTION: THE RESEARCH PROJECT 1 BACKGROUND - COMMUNITY FORESTRY, ITS TIME HAS COME 1 THE RESEARCH PROBLEM: OUTDATED LAND TENURE SYSTEM 6 RESEARCH METHODOLOGY 15 THESIS STRUCTURE 16 CHAPTER II. PROPERTY RIGHTS, TENURE AND FOREST RESOURCE MANAGEMENT 19 OVERVIEW OF CHAPTER 19 FOREST TENURE 19 PROPERTY RIGHTS AND FOREST RESOURCE MANAGEMENT IN BC 20 EVOLUTION OF PUBLIC FOREST MANAGEMENT OBJECTIVES 24 First Nations and Early Settlement 24 The Period 1865 -1909 25 Fulton Commission, 1909-1910 29 BC's First Forestry Act, 1912 30 The Period 1912- 1942 31 First Sloan Royal Commission On Forestry, 1943 - 1945 31 1947 Forest Act 35 The Period 1948- 1955 .35 Community Forests In The Districts Of North Cowichan And Mission 37 The Second Sloan Royal Commission on Forestry, 1955 - 1956 37 The Period 1956- 1974 38 The Royal Commission On Forest Resources (Pearse Commission), 1974 - 1976 39 The 1978 Forest Act 40 Forestry And Sustainable Development 42 The Forest Resource (Peel) Commission, 1989- 1992 45 iii Forest Licences Awarded to Communities, 1995 - 1996 47 Community Forest Initiatives 1997 - 1998 48 CHARACTERISTICS OF FOREST TENURES 51 Comprehensiveness 52 Duration 52 Transferability 53 Rights of Tenure Holder to Economic Benefits 54 Exclusiveness 54 Security 55 Use Restrictions 56 Allotment type 56 Size Specification 56 Operational Stipulations 56 Operational control 57 BC's C U R R E N T TENURE S Y S T E M 57 Tree Farm Licences 59 Forest Licences 60 Woodlot Licence 61 Characteristics Of TFLs, FLs And Woodlot Licences 61 C H A P T E R S U M M A R Y 66 CHAPTER III. C O M M U N I T Y , C U L T U R E , CONFLICT A N D P L A N N I N G 68 O V E R V I E W OF CHAPTER 68 C O M M U N I T Y 68 C U L T U R E 76 CONFLICT 83 PLANNING 88 FOREST M A N A G E M E N T A N D PLANNING C H A L L E N G E S 93 Long Time Frames 93 Future Uncertainty 94 Economics 94 Social Needs/Desires 94 Problems And Symptoms 95 Governance • • • 95 Technological 96 Climate 9 6 Knowledge 96 Resources for Management 96 Resources Considered 97 Accuracy In Measurement 97 Accuracy In Evaluation 97 Carrying Capacity 98 Cumulative Impacts 99 Complexity 99 Equity 100 Power And Authority 100 iv SEVEN STAGES OF CONVENTIONAL PLANNING 101 FIVE FEATURES OF SUCCESSFUL PLANNING 102 DISPUTE RESOLUTION 106 COOPERATION 108 CHAPTER SUMMARY Il l CHAPTER IV COMMUNITY FORESTRY AS AN INTEGRATED PLANNING TOOL 113 CHAPTER OVERVIEW 113 COMMUNITY FORESTRY IN THE INTERNATIONAL CONTEXT 114 Community Forestry In Sweden 116 COMMUNITY FORESTRY IN CANADA 122 Canada Survey 123 Yukon 124 Manitoba 124 Nova Scotia 124 Prince Edward Island 124 New Brunswick 125 Newfoundland and Labrador 125 Albertan Government Community Forest Initiatives 125 Saskatchewan Government Community Forest Initiatives 126 Northwest Territories Government Community Forest Initiatives 126 Quebec Government Community Forest Initiatives 127 Ontario Government Community Forest Initiatives 129 The Geraldton Community (GCF) Forest Inc. Pilot Study 131 The Woodlands In Keeping For Our Youth (WIKY) project . . . 133 The Elk Lake Community Forestry Pilot Project (ELCF) 134 The 6/70 Community Forest Pilot Project 135 Lessons Learned from the Ontario Community Forest Pilot Projects and Community Forestry in Ontario Today 137 Community Forestry in British Columbia 141 District of North Cowichan Community Forest 142 District of Mission Community Forest 144 City of Revelstoke Community Forest 146 Forest Licences Awarded To Communities In BC 149 Examples of Current BC Community Forest Proposals 149 Oona River Community Association 150 Malcolm Island 151 City of Prince George 153 Island Community Stability Initiative (ICSI) 154 COMMUNITY FORESTRY AS AN LNTEGRATED PLANNING TOOL 155 Four Stages of Forestry Planning in British Columbia 156 Tenures, Government Policy And Market Failures 158 Sustainable Development And Sustainable Forestry 161 The Common Property Misconception 164 The Potential Strengths Of Common Property and Community Forestry Management 168 v The Potential Weaknesses Of Common Property and Community Forestry Management 171 The Paradigm of Community Forestry 174 C HAPTER S U M M A R Y 174 CH A PT ER V . PROVINCIAL C O M M U N I T Y S U R V E Y 178 O V E R V I E W OF C H A P T E R 178 BRIEF OUTLINE OF THE S U R V E Y R E S E A R C H 178 PROVINCIAL MAIL-OUT S U R V E Y 180 Highlights Of Mail-out Survey Results 182 Personal Interviews and Stratification Of Mail-out Survey Sample 202 Focus Groups 212 Focus Group Design 214 Focus Group Organization 215 Focus Group Management Strategies 217 Focus Group Series 1: Communities Without Community Forests . . . . 218 Focus Group Series 2: Communities Actively Pursuing a Community Forest 223 Focus Group Series 3: Communities with Existing Community Forests 227 C H A P T E R S U M M A R Y 231 CHAPTER V I . DESIGN A N D DISCUSSION OF PROPOSED C O M M U N I T Y FOREST TENURES . . 238 C HAPTER O V E R V I E W 238 THE QUESTION OF E M P L O Y I N G N E W OR O L D TENURE SYSTEMS TO F A C I L I T A T E C O M M U N I T Y FORESTRY 238 Community Forest Pilot Project - Committee Recommendations and Proposed Legislative Amendments (Bill 34) 241 PRINCIPLES FOR ESTABLISHING A C O M M U N I T Y FOREST 242 Principle One: Land Administration 242 Principle Two: A Forest Reserve 244 Principle Three: An Administrative Board 246 Principle Four: Local Benefits are a Primary Goal 248 Principle Five: Intensive Management for Multiple Outputs 251 Principle Six: Financial Self-Sufficiency 252 Principle Seven: Staffing 254 Principle Eight: The Community Forest is a Long-Term, Integral Part of the Community 255 Principle Nine: Management Strategies 257 Principle Ten: Use of the Community Forest for Research, Development, and Education 258 Principle Eleven: Lifestyle and Quality of Life 259 Principle Twelve: Establish a Demonstration Forest 260 PROPOSED C O M M U N I T Y FOREST TENURES 261 Duration 262 vi Transferability 266 Allotment Type 266 Security 267 Operational Control 268 Potential Community Tenure Variability 270 Size Specification 270 Comprehensiveness 272 Right of Tenure Holder to Economic Benefits 274 Exclusiveness 279 Use Restrictions 280 Operational Stipulations 281 CHAPTER SUMMARY 284 CHAPTER VII. SUMMARY AND CONCLUSIONS 289 THESIS SUMMARY 289 RESEARCH CONTRIBUTIONS AND IMPLICATIONS 300 LIMITATIONS 301 IMPLICATIONS FOR FUTURE RESEARCH 303 BIBLIOGRAPHY 305 INTERVIEWS 321 APPENDIX A DETAILS ON EXISTING FOREST AREAS MANAGED BY COMMUNITIES 324 APPENDIX B NATIONAL MAIL-OUT SURVEY FORM 332 APPENDIX C. PROVINCIAL MAIL-OUT SURVEY FORM 338 APPENDIX D. PERSONAL INTERVIEW DATA 353 APPENDIX E. FOCUS GROUP DATA 364 FOCUS GROUP SERIES 1: COMMUNITIES WITHOUT COMMUNITY FORESTS 364 FOCUS GROUP SERIES 2: COMMUNITIES ACTIVELY PURSUING A COMMUNITY FOREST 373 FOCUS GROUP SERIES 3: COMMUNITIES WITH EXISTING COMMUNITY FORESTS 379 APPENDIX F. FINAL RECOMMENDATIONS ON ATTRIBUTES OF A COMMUNITY FOREST TENURE - vii COMMUNITY FOREST ADVISORY COMMITTEE REPORT 388 APPENDIX G. BILL 34 - PROPOSED LEGISLATIVE AMENDMENTS NECESSARY TO IMPLEMENT AND PILOT COMMUNITY FOREST AGREEMENTS 398 viii LIST OF TABLES Table 2.1 Forest Tenure Types in British Columbia 59 Table 2.2 Tenure Characteristics 62 Table 5.1 Response to Mail-out Survey 183 Table 5.2. Level o f awareness o f the concept o f community forestry prior to receiving survey 183 Table 5.3 Means by which communities have been made aware o f the concept o f community forestry 185 Table 5.31 Top five means by which communities have been made aware o f the concept o f community forestry 186 Table 5.4 Level o f understanding o f the concept o f community forestry prior to receiving survey 187 Table 5.5 Means by which some understanding o f the concept o f community forestry was obtained 188 Table 5.51 Top five means by which communities gained some understanding o f the concept o f community forestry 189 Table 5.6 Interest in increasing awareness o f the concept o f community forestry 190 Table 5.7 Preferred means o f increasing level o f understanding o f the concept o f community forestry 191 Table 5.71 Top five means by which communities would prefer to gain additional understanding o f the concept o f community forestry 192 Table 5.8 Communities ' level o f experience with direct forest management 194 Table 5.9 Reasons for no community direct involvement in forest management 195 Table 5.10 Means by which communities were directly involved in forest management 195 Table 5.11 How control or ownership o f municipal or Crown land occurred 196 Table 5.12 If municipal land owned, any constraints as to the aspirations or intentions o f the community for this land? 196 Table 5.13 Communities'need for direct involvement in forestry 197 Table 5.14 Reasons for no need for direct community involvement in forest management 198 Table 5.15 Details on need for direct community involvement 198 Table 5.16 Communities ' preference for direct involvement in management o f forest land surrounding or within an hour's drive o f the community 199 Table 5.17 Details on no preference for direct community involvement 200 Table 5.18 Details on preference for direct involvement in management o f forest land 201 Table 5.19 Municipal government involvement in policy initiatives in researching or establishing community forests 201 Table 5.20 N o n Governmental Organizations involved with community forest initiatives 202 Table 5.21 Mail-out survey respondent communities selected for personal interviews. Forest region o f community location indicated in table 203 Table 5.22 Communities without community forests ix Forest Regions of survey communities indicated in cells Table 5.23 Communities actively pursuing community forests. Forest Regions of survey communities indicated in cells. x LIST OF FIGURES Figure 5.1 Comparison o f means by which understanding was obtained and the preferred sources to increase awareness 193 Figure 5.2 Comparison o f awareness responses between survey and interview to determine consistency 205 Figure 5.3 Comparison o f understanding responses between survey and interview to determine consistency 208 Figure 5.4 Comparison o f level o f experience responses between survey and interview to determine consistency 209 Figure 5.5 Comparison o f level o f need responses between survey and interview to determine consistency 211 Figure 5.6 Comparison o f level o f preference responses between survey and interview to determine consistency 212 xi ACKNOWLEDGEMENTS I would first like to thank UBC and its scholarship, fellowship and bursary donors for the financial support received while a PhD student. Thanks also to Forest Renewal BC and the Union of BC Municipalities in providing financial and logistical support for the survey work in this thesis. Marie Crawford of the UBCM was especially supportive and encouraging. I thank my parents for all of the love and support that led to my successfully completing this thesis. It has been a long road, and at times a very difficult one - juggling study, work and research - but they were always there to help and to provide much needed encouragement. I would also like to thank my brother Ben, and sisters Teresa, Sara and Miriam for bolstering a brother's spirits which on occasion were known to flag. My friends Bill Wareham, Terry Sullivan, Elizabeth Bronson, Chris Gaston, Bob Brett, Rory Mcintosh, Ramvir Singh, and Martha Kertesz, were always rock solid supporters. I am thankful to Dr. David Haley for agreeing to be my supervisor and for supporting the time taken to work with First Nations. My committee of Peter Sanders, Dr. Julian Dunster and Dr. Stephen Sheppard were wonderful blends of the practical, theoretical and philosophical perspectives. Lastly, I acknowledge my special friend Smithrite who has travelled around the province and across Canada twice to be with me, and has put up with many absences while I travelled repeatedly to Europe, Asia and across Canada undertaking research and study. I wish that all could have friends such as he - so patient, loyal and loving - the consummate man's best friend. xii DEDICATION This thesis is first dedicated to my parents, William and Ruth Mitchell-Banks, who have unstintingly given me all of the love, support and financial assistance possible. They never lost faith in either me or what 1 was trying to do. Without their assistance, I would neither have been able to complete all of the schooling behind me nor learn all of the lessons that life has offered me to date. I love them both very much and am forever indebted to them. This thesis is also dedicated to four friends who have left this world after teaching me precious lessons and serving as beacons when the light was poor and I was tired. Allan Falconer showed me how to have a passion about life, a love of laughter and how to nurture an obsession for learning and experience - and taking risks. David Shirley quietly demonstrated steadfast courage, unflagging commitment and shared the beauty of one of this world's truly wonderful minds coupled with a gentle heart. Rollie Lussier introduced me to my future love - forestry - and shared with me his love of the forest, his courage in his stand against poor forestry and his throaty laughter over my youthful follies. Dale Wilson taught me about the importance of trying, exploring and taking care of yourself while not betraying your path. Laughter and tears were the bonds of our friendship. You four are always in my heart. I think of you constantly and will always miss the future memories we would have shared together . xiii C H A P T E R I. I N T R O D U C T I O N : T H E R E S E A R C H P R O J E C T B A C K G R O U N D - C O M M U N I T Y F O R E S T R Y , ITS T I M E H A S C O M E . Community forestry has been practised in parts of Europe for over a millennium, and the environmental, economic and social benefits it provides are increasingly understood and appreciated. A community forest is defined as, Around the world, the forested lands surrounding or considered to be part of the community. In a 'developing world' context, community forests are a source of fuelwood, fodder, grazing and agriculture, and typically the most vital means of community survival. See also Agroforestry. In the developed world, community forests are less well defined and encompass many forms of tenure to achieve many different purposes, including recreation, aesthetics, timber supply, fish and wildlife enhancement, and watershed protection. However, as in the developing world, most forms embrace the concepts, in varying degrees, of local benefits for local people, local control of local resources, and one or more intensive forms of management to provide . a wide array of outputs from the forested lands (Dunster and Dunster 1996, 65). In the Province of British Columbia, the potential value of community forests has been recognized since the 1930s. The establishment of such forests was explicitly recommended by Chief Justice Gordon Sloan in both his 1945 and 1956 Royal Commission Reports on BC's Forest Resources, Areas of reverted land situated in or near settled communities could also be managed on a sustained-yield basis as public working-circles by municipal authorities, subject to regulations designed to prevent improvident future management and transactions in relation thereto. These community forests, apart from the timber production therefrom, have proven to be of considerable value in the United States as a means of acquainting the public with the benefits to be secured from the practice of sustained-yield forestry, the necessity for fire-protection, and related subjects (Sloan 1945, Q147). This concept [Municipal Forest Management Licence] is one which should find a wider acceptance, and as a guide and encouragement to other municipalities owning forested land areas, and with unalienated Crown timber contiguous thereto, I think it is desirable to set out in some detail the background of the application of the Mission District Municipality for a management licence (Sloan 1956, 743). Sloan's recommendations for community involvement in forest management were not adopted - 1 with the notable exception of the District of Mission which obtained Tree Farm Licence Number 26 in 1958 (District of Mission 1996). There emerged, instead, a system under which most public forest land is held under long term licensing arrangements by a relatively small number of large forest products corporations (Haley and Luckert 1990) - many with multinational interests (Pearse 1976). The attractiveness of local control over forests was again raised and supported by Dr. Peter Pearse in his 1976 Royal Commission on Forest Resources, Local governments that are prepared to integrate their lands with surrounding Crown forest land is one attractive possibility. The sensitive balance between timber production, recreation, and other non-commercial forest land uses that are particularly valuable close to centres of population can in these cases be struck locally, making resource management highly responsive to local demands. It is to be hoped that the success of the Tree-farm Licence held by the District of Mission, in the Fraser Valley, can be repeated elsewhere (Pearse 1976, 118). A strong case was made for small scale forestry - including community forests - in the Executive Summary report of the BC Forest Resources Commission, A bigger share of the Allowable Annual Cut should be allocated to smaller tenure holders who will manage the forests with emphasis on such values as community watersheds, range, wildlife, recreation and community forests (Peel 1991, 19). In 1993, a community forestry conference was held in Haney (Mission) to investigate community forestry and to inform communities, government and industry about the concept. This two day conference was very well attended and a proceedings was financed by Forest Resource Development II (FRDA II) funding. Later that year in November, the Oona River Community Forest Proposal was submitted, the first community forest proposal since that of Mission in the 1950s. There have been over 100 requests for copies of this study from communities and individuals around the province directed to the Skeena-Bulkley Regional District who financed the study.1 Community forestry is also a topic which was actively explored by the BC Commission on 'Fletcher 1996. 2 Resources and the Environment (CORE)2. In April 1996, the Malcolm Island Community Forest Tenure Feasibility Study (Robin B. Clarke Inc. 1996) was published with this work being funded by Forest Renewal BC 3. In May 1996, the Feasibility Study: Prince George Community Forest (Cortex Consulting 1996) was released, with this work being funded by Forest Renewal BC, the City of Prince George and seven local forest companies. The Union of BC Municipalities (UBCM) addressed community forestry in both the 1996 and 1997 Annual General Meetings and there was a UBCM sponsored Community Forests Conference in Rossland in January 1997. Two Community Forest Symposia in Masset and Skidegate on Haida Gwaii/The Queen Charlotte Islands were held in September 1997 sponsored by the Islands Community Stability Initiative. At the 1997 UBCM AGM, a community forestry committee was struck to formally investigate community forests and lobby the provincial government for their establishment. The BC government, while appearing to renege on promises of tenure reform made in 1995,4 are taking some steps to address the public interest in community forests. There were a number of announcements during 1996-97 of non-replaceable Timber Licences targeted for communities. In 1996 the Ministry of Forests made a commitment to establish at least one community forest license on Haida Gwaii/The Queen Charlotte Islands (Islands Community Stability Initiative and Ministry of Forests 1996). These initiatives are addressed in more detail in Chapter Two. In July 1997, the report Forests in Trust: Reforming British Columbia's Forest Tenure System for Ecosystem and Community Health was released. This study, discussed in more detail in Chapter Two, explores eco-system based community management and proposes establishing a Community Forest 2Leech 1994. 3Gardner 1998. "Petter 1995. 3 Trust Act (Burda et al. 1997). The work has received a lot of attention from communities, interest groups and the government. The Jobs and Timber Accord (discussed in more detail in Chapter Two) announced on June 19, 1997 represents another government forestry initiative that addressed the need to look after the forest to sustain jobs, communities and environmental integrity (Ministry of Forests 1997a). One aspect of the accord is a community forestry pilot study and the establishment of a Community Forests Advisory Committee, who by the end of May 1998, had addressed among other things: recommendations on tenure structure and developed criteria to evaluate community pilot proposals. The repeated reference to the value of community forestry in previous Royal Commissions, conferences, symposia, forestry journals and published reports along with the current high public interest suggest that community forestry is an 'idea whose time has come'. In many ways the recent developments surrounding community forestry can be viewed as having been driven by a convergence of events including: • The 1987 publishing of Our Common Future and the public becoming aware of the concept of sustainability and community involvement in resource management; • Canada's 1991 Green Plan and the emphasis on establishing sustainable development and specifically sustainable forestry with greater public input; • The 1992 Rio Summit and the importance of sustaining forests in that process; • Effective awareness raising and issues definition and media use about forestry practices by Non-Governmental Organizations such as GreenPeace, World Wide Fund for Nature and others; • Growing public awareness regarding the importance of forests and the need to have good forest management to ensure the sustainability of those forests and more lately a growing appreciation of peoples' dependence on healthy forests; • International marketing pressures and boycotts which have been instrumental in raising the 4 profile of forestry in the province and have led to an acceptance by industry and the government of a need to 'change our ways'; • The certification movement, especially the Forest Stewardship Council (FSC) and the pressures this places on timber and wood products suppliers to follow acceptable forest management practices and address community and Indigenous Peoples issues; • The growing awareness of the Union Of BC Municipalities (UBCM) and the political power that this association has in lobbying government; • The current provincial government is 'greener' than previous governments. This government has implemented a number of resource and forestry initiatives (some which were made in the Peel Commission's final report of 1991), including: undertaking a Timber Supply Review (TSR); establishing a Forest Practices Code (FPC); establishing log yards to promote competition and increase access to timber; establishing smaller tenures for communities and First Nations groups to meet their economic and social needs; and establishing a forest funding mechanism (Forest Renewal BC). All of these factors have contributed to a greater focus on the forests and people - with a special focus on forest dependent communities and the possibility of community forests. There is often confusion (especially with the public) between the two terms timber management and forest management. It is important to differentiate between them, as they will be referred to throughout the thesis. Timber management is defined as, The activity involving the allocation of forested lands for harvesting of the timber on that land. Timber management may involve planning, road-building, logging extraction of merchantable timber for processing off-site, and varying intensities of silvicultural activity to encourage another stand of trees to grow back. Timber management is an important subset of forest management, but it is not an equivalent activity (Dunster and Dunster 1996,316). Forest management is much broader in scale and scope and involves, 5 The practice of applying scientific, economic, philosophical, and social principles to the administration, utilization, and conservation of all aspects of forested landscapes to meet specified goals and objectives, while maintaining the productivity of the forest. Forest management includes the subset of activities known as timber management, but also involves planning and managing forested landscapes for fish and wildlife, biological diversity, conservation measures, parks, wilderness, recreation and aesthetic values. Forest management is an all-encompassing activity and is not to be confused with the more restrictive activities associated with timber management (Dunster and Dunster 1996, 137). One final term will be defined, and that is the word forestry, 1. A profession embracing the science, business and art of creating, maintaining, and managing forested landscapes and their many component parts to produce consumptive and/or nonconsumptive outputs for use by humans or other species in a manner that does not cause ecosystem degradation. 2. A loosely used term to describe timber management, and associated activities such as silviculture and forest protection. It is often used erroneously, purporting to mean forest management when in fact describing timber management alone (Dunster and Dunster 1996, 137). THE RESEARCH PROBLEM: OUTDATED LAND TENURE SYSTEM This thesis will examine the existing level of awareness and interest in community forests in British Columbia and the types of arrangements for community forests desired by communities throughout the province. The thesis will address whether these perceived needs can be met within the constraints of the existing Crown forest tenure system or will require the creation of tenure instruments specifically designed to accommodate community involvement. The benefits of this doctoral research include: 1. Providing an information base and guidance for future reforms to the crown forest tenure system; 2. Increasing the level of understanding of what is sustainable forestry development and what are sustainable forestry communities; 3. Generating knowledge and information which will be transferable to other Canadian provinces and territories5; and 4. Undertaking research which will be of some relevance to both less-developed countries as well 5Some of which have already expressed interest in this work. 6 as to developed countries.6 It has been apparent for some time that the current system of land tenure, while having served the citizens of BC well in the past, is being rendered obsolete and ineffective by: changing social attitudes towards forests; the transition from old-growth harvesting to the establishment and management of second-growth stands; and increasing demands on the limited resource base (Haley 1993, Haley and Luckert 1995). Specifically there are four undesirable outcomes of the existing tenure system: 1. Inadequate incentives for timber growing and optimum forest establishment and management; 2. The existing tenures do not effectively address the transition from old-growth to second growth forests; 3. Inadequate incentives and/or management interest for the production of non-timber products and services; 4. The existing tenures do not address sustainable development, community and specifically community forest concerns. These outcomes will be sequentially addressed in more detail below. 1. The existing tenure system was designed to provide for the orderly exploitation of old growth timber resources. It provides no incentives for timber growing (Haley and Luckert 1992) and is an unsatisfactory vehicle for optimum establishment and intensive management of timber crops (Mahood and Drushka 1990). Healthy productive forests are a pre-requisite for a stable forest industry and for stable communities with forest-based or dependent economies. 2. One of the most important concerns with the forestry situation in British Columbia is the transition from old-growth harvesting to second-growth management (Haley and Luckert 1994). The Nordic countries have almost completely made the transition from old-growth to managed forests of second-growth. Nordic forest land ownership/control is more widely held than in BC, with over 200,000 Swedish owners and 300,000 Finnish owners of forest land (Gilfillian et al. 1990). The success of forestry in the Nordic countries suggests that smaller, locally controlled and managed units are an 6This is based on the requests to the researcher for community forest papers and to present at international conferences. 7 effective means to address both multiple forest management concerns and the transition from first- growth to second-growth stands. 3. Existing forest tenures provide no incentives for the production of non-timber forest values (Haley and Luckert 1995a). Many of these values also appear to be more amenable to local production and management (Pearse 1976, Peel 1991, Hammond and Hammond 1992, Mitchell-Banks 1994). 4. Local community stability is said to increase with economic diversity (Byron 1976, Le Master and Beuter 1989). This intuitively makes sense. Economic diversification can be compared to a stock portfolio in that each different company or economic sector can be considered analogous to a stock - as each creates income. Similarly, the economic health of a community can be considered analogous to the value of a stock portfolio. The more varied the stocks held, the less fluctuation there is in the portfolio. This diversification is referred to as risk management and its primary purpose is to prevent rapid swings in the value of the stock portfolio. Mutual funds, with a number of stocks in each fund capitalizes on this risk management concept, and are typically not subject to rapid swings in price. Similarly, communities with a wide range of economic activities are not subject to the wild economic swings that single industry towns can experience. A decline in lumber prices would only impact the saw mill sector, but would not impact the agriculture, manufacturing, tourism or mining sectors for example. British Columbian forestry management, until recently, has primarily been directed towards timber values (Pearse 1976, Marchak 1983, Pearse 1992, Clogg 1997). In other developed forestry nations, such as Sweden, Finland and Germany, forest management objectives are more diverse and explicitly address non-timber values such as recreation, aesthetics, and mushroom and berry production (Pukkala and Kangas 1994, Hakkila 1995, Hannelius et al. 1995). The ownership of the forests in the Nordic countries and many other countries is more diverse, and the large number of owners have a spectrum of objectives and approaches in the management of their Non-Industrial Private Forest (NIPF) Land. In Finland, where every fifth family owns forest land, 8 social values such as local employment and traditional landscapes must be taken into account with forest management and harvesting activities (Hakkila 1995). Community forests - one of the forms of NIPF - typically focus more on timber production and employment in the north, while in the south there is more attention paid to recreational values.7 It would take the collective failure of a significant number of these private forests for the aggregate result to significantly impact nearby communities (Shelford 1993). This diversity within an industry can also contribute to economic stability. Community forestry, which by its very nature is considered small scale forestry, can act as a planning interface/exchange mechanism between forestry inputs and outputs, effectively addressing the broad spectrum of timber and non-timber values in forestry management (Auden 1944, Pearse 1976, Harvey 1993, Mitchell-Banks 1994, Allan and Frank 1994, Revelstoke Community Forest Corporation 1995, District of Mission 1996.) The British Columbia forest industry has developed the utilization of the natural old-growth forests in the province (Ministry of Forests 1992). These forests are essentially a 'free' resource that required little investment or forest management as they were already established prior to colonial development and indeed their presence led to the investment in the forest sector. During this era of old growth exploitation, the interests of the forest industry, local communities and the provincial government have coincided, to a large degree, with the timber industry as the major source of community employment, corporate profits and public revenue (Marchak 1983). This is no longer the case and interests continue to diverge (Drushka, Nixon and Travers 1993). The conversion of the economically and legally accessible costless (to establish and grow), high value, high volume old growth stands is reaching completion. In 1976, Pearse wrote in his Forestry Commission Report, ...timber production in British Columbia has hitherto been based almost entirely on the recovery of virgin 'old-growth' timber, and the implications of the inevitable 7Jonsson 1994. 9 adjustment to 'second-growth' timber will be profound. The old-growth timber on which our industry has been built was often of exceptional quality, capable of manufacture into products that command premium prices in world markets. As this stock is depleted (and it is appropriate to refer to it as stock, since it is not reproducible within any meaningful planning horizon), much of the special advantage this province's timber has enjoyed will be lost (Pearse 1976, 6). In a 1989 article in the Globe and Mail, Pearse wrote that under present economic conditions, there was approximately sixteen years of logging left on the coast (Shelford 1993). The British Columbian and federal governments refer to the reduction or conversion of the old growth forest, The amount of timber harvested annually in BC is projected to decline in the near future in many areas of the province. Past and current harvesting activities are changing the composition of BC's forests. Existing forests with high volumes of timber are being harvested and replaced with younger, smaller trees, and in the future an increasing proportion of the timber harvest will come from these "second growth" forests. These future forest stands are expected to be harvested at an earlier age and will therefore contain a lower volume of timber per unit area than the original forest. Changing public values and a consequent increase in demand for non-timber resources will also likely result in a decrease in timber harvest in the future (Ministry of Environment, Lands and Parks and Environment Canada 1993, 50). The recent provincial wide Timber Supply Review recommended by the 1991 Peel Commission acknowledged that for at least twenty years the decline in the timber supply has been expected (Ministry of Forests 1995). Exact time predictions are not the issue. What is important to consider is that this transition from the old-growth supplied forest sector to the second-growth industry will be full of challenges on how to harvest a smaller tree and process a very different type of feedstock. Binkley states, British Columbia lies at a cross roads in the transition between forests provided by providence and those created through human husbandry and stewardship. Many of the changes now tormenting BC are predictable consequences of human interaction with primeval forests. Indeed, the earliest recorded story - the Epic of Galgamesh- written in cuneiform on a clay tablet 5,000 years ago - remarks on the dire consequences of forest depletion. Each subsequent civilization has re-lived this story with little change in the theme, from the Greeks in the Mediterranean, to the wandering bands in Central Europe, the Swedes in the last century and our southern neighbours in the last decade or so. Large expanses of virgin forest remain in only a few places - in BC and elsewhere in 10 eastern Russia, in the Amazon and in parts of Africa. Those in BC lie on the cusp of an irreversible slide into the established historical pattern in resource depletion and attendant social disruption. But, unlike most other developed parts of the world, in BC there is still an opportunity to make the changes needed to sustain a vast wild estate while continuing a prosperous society based on forest revenues (Binkley 1995, 2). Community forests in BC, as in many other parts of world, are increasingly seen as a component of sustainable development at a regional level (Auden 1944, Harvey 1993, Mitchell-Banks 1993). Community forests can serve as an effective integrated planning tool, helping address sustainability concerns such as: i) socio-economic issues including participation and equity; ii) ecological issues such as cumulative impacts and carrying capacity for a land base; iii) economic considerations such as helping to reduce the rural-urban flow of raw resources and finances that traditionally occurs in resource extraction and management (Auden 1944, Harvey 1993, Mitchell-Banks 1994). Community forestry is centred around the primary concept of local control and decision making in the management of the forest lands surrounding a community (Dunster 1989, Harvey 1993, Mitchell- Banks 1993). Experience suggests this results in decisions that are more informed. The decision makers live in the area and are continually made and kept aware of the local concerns and hopes. Furthermore, the institutional arrangements involved in the management of the land base are responsive to local conditions and reflect the belief that "ecosystem and social-system variation should be reflected in policy and administration" (Gibbs and Bromley 1989, 31). Community forestry is not solely driven by the 'bottom line' or profitability goals that underlies industrial forestry or indeed any for-profit organisation. This area specific management and institutional design is very applicable with respect to environmental concerns. As British Columbia moves towards more intensive silviculture, local knowledge of factors such as soils, micro climate, drainage, etc., will become more important. The value of this localized environmental knowledge is well established in many countries, including Germany, Switzerland, and throughout the Nordic countries where small scale forestry has been practised for generations at the same sites. 11 With community forestry, the decision makers living in the area have to face or live with the consequences of their planning decisions (good or poor), which effectively establishes a form of accountability. The local managers are accountable to local people. The local involvement, in effect a form of shared decision making by the community members, creates a sense of "ownership" or responsibility over the policy and decision making that involves "their" forest lands (Dunster 1989, Mitchell-Banks 1995, Clogg 1997). Community Forests can exist under a number of different property rights arrangements involving various combinations of ownership or control. Private property, leased land, land trusts, tenured land from the state, land under contract, and other property rights' vehicles can all be utilized to vest property rights over the forest land base in the members of the community. This vesting can occur through various vehicles: 1) rights vested in a collective; 2) rights vested in a cooperative; 3) rights in a commons; 4) rights vested in a local government; 5) rights vested in a non-profit society; and 6) rights vested in a limited corporation. A collective is the organizational unit of collectivism, which is the socialist principle of control by the state of all means of production or economic activity. In the former Soviet Union, Collective Farms were established which were operated by a community under the supervision of the state. A cooperative, in contrast to the collective, is a community of people who freely agree to cooperate with each other. There is no direct state supervision of the enterprise. Cooperative membership is gained through the purchase of an equity stake in the venture - so cooperatives can be thought of as a social corporation. Membership in the cooperative involves agreeing to jointly assist and cooperate with other members, as delineated in the cooperative constitution or other mandates in undertaking the business plans. The Kibbutzim in Israel and the cooperatives in Mondragon (Basque region of Spain) are some of the best known cooperatives. The cooperatives in Mondragon encompass seven types, each adhering to ten cooperative principles (Morrison, 1991). 12 A commons is a marine or land area in which special rights, often traditional and/or exclusive, are given to land or vessel owners. Commons are found throughout the world, and can take a number of forms. In Japan, there are the coastal sea fisheries, in which complex and locally varied systems govern the conduct of the fisherman, with both local and state sanctions on inappropriate behaviour (Ruddle 1989). In Sweden there are forest commons in which various rights including grazing, forage, water for irrigation, hunting, fishing and timber rights are allocated. Some of these rights may be applied differently within the Byalag (organizational unit of land owners) with one family having a right to hunt elk,8 while another family may only have the right to hunt rabbits.9 The rights are administered by all of the land owners, with one vote being accorded to each land holding. These rights are revisited each year in an annual meeting, in which the land owners get together to discuss the management of their commons, to vote on decisions, and to take a tour of the common land, with the chief forester often giving the tour.10 The First Nations people of British Columbia have a diversity of concepts and practices of governance and territoriality. Factors such as how nomadic the people were, how their societies were structured (such as egalitarian or rank) and the physical location and inter-nation relationships that existed with neighbouring peoples all influenced property rights (Poelzer 1998). Community forestry is not a native concept and with the diversity of both historical, contemporary and potential future property rights, it is beyond the scope of this thesis to investigate Native property rights as a community forest model. Rights can also be vested in a municipal government, in which the government will administer Scandinavians use the term elk for the animal which we call a moose. 'Andersen 1995. '"Andersen 1995. 13 the land or water resources on behalf of the community members. Most of the community forestry that exists in the nordic countries, Germany and parts of North America is representative of this form of resource management by a group. It is this model of community forestry that the thesis will focus on. Other potential models such as: unincorporated bodies or partnerships; non-profit societies; cooperatives; alternative structures; or limited corporations have been suggested (Robin B. Clarke Inc. 1996, Cortex Consultants 1996). In Chapter Six a detailed examination of administrative models is provided. THESIS OBJECTIVES Current tenure arrangements in British Columbia are believed to be inadequate vehicles for facilitating the establishment and management of community forests. More specifically, it is contended that existing tenures within the community forestry context: • fail to provide adequate incentives for optimal forest management to address community concerns; • fail to provide, or at times even provide for, the adequate management of a suite of timber and non-timber values; • do not allow for the development and pursuit of locally defined management objectives; • centralized forest management decision making leads to alienation of local interests, a general discouragement of local initiatives, and lack of accountability. Rather than utilizing the traditional thesis method of hypotheses, the researcher and committee agreed to the use of objectives to define the research direction, methodology and thesis structure. The thesis objectives are listed below: 1. Compile a comprehensive review of the evolution of property rights, tenure and forest resource management in British Columbia and determine what role community forestry played in this; 2. Investigate the characteristics of forest tenures in British Columbia, with a particular focus on 14 Tree Farm Licences, Forest Licences and Woodlot Licences; 3. Examine the interrelationships between community, culture and conflict and how these influence planning. Then, examine the challenges and risk of forestry planning and how a formalised planning and dispute resolution process with extensive public and community participation can be used to assist in the planning process; 4. Investigate community forestry in the international setting, with a particular emphasis on Sweden (due to social and economic similarities to Canada) to determine how the forests are managed there and what might be transferable to Canada; 5. Conduct a Canada wide survey to determine the levels of interest and awareness in community forestry; 6. Investigate community forestry as an integrated planning tool and how it can assist in establishing more sustainable forestry; 7. Conduct a provincial survey of the members of the Union of BC Municipalities to determine their levels of awareness of, and interest in, community forestry. There have been indications of awareness among British Columbia forestry-based communities about community forests. To date this awareness has not been quantified or formally evaluated; 8. Investigate the issue of employing new or old tenure systems to facilitate community forestry in British Columbia; 9. Review Dunster's twelve principles for establishing a community forest and how these would apply to a community forest tenure in British Columbia; 10. Draft the characteristics of proposed community forest tenures. In British Columbia existing tenure arrangements are inadequate to optimally facilitate the establishment of community forestry as they were designed primarily for the industrial harvesting of old-growth timber. Community needs and concerns can vary from those of industry, and a community forest tenure - designed to address these needs and concerns is required. RESEARCH METHODOLOGY Research for the thesis involved a literature review, as well as the generation of new community forestry data by way of a national and a provincial mail-out survey, personal interviews and focus groups. Brief details are provided here by way of an overview, a more detailed explanation will follow in Chapter Five. The provincial mail-out survey was funded by Forest Renewal British Columbia (FRBC) under the Research Portfolio and conducted with the cooperation of the Union of British Columbia Municipalities (UBCM). The survey was directed to the 179 community members of the UBCM and was used to determine the level of interest and awareness in community forestry in British Columbia. The mail-out survey data was supplemented by sixteen personal interviews with a stratified 15 subset of the mail-out survey respondents. The purpose of the personal interviews was to obtain qualitative and more rich survey data using open-ended questions. Focus groups were used to investigate community awareness and interest in community forestry, using the group dynamics of the focus group to obtain information. Three series of focus groups were carried out: 1) Communities without community forests; 2) Communities actively seeking a community forest; and 3) Communities currently with community forests (Districts of North Cowichan and Mission, City of Revelstoke). A national mail-out survey was conducted to determine the level of national awareness and interest in community forestry. The purpose of this survey was to obtain background information about community forestry across Canada to provide some context for the state of community forestry in British Columbia. The survey was directed to the Minister of Forests or Natural Resources for each province and territory, and a survey was also sent to the federal government. A literature search and interviews were carried out on current forest tenure arrangements in British Columbia and the rest of Canada to identify how they succeed or fail to facilitate community forestry. The concepts and theories of property rights, community development, community forestry, communities and resource planning and management were reviewed and studied. Numerous books, articles, papers and interviews were used to compile the information. The history, experience and practices in European community forestry, particularly in Finland, Norway, and Sweden were researched and examined for transferable concepts or policies that could be applied to British Columbia. Three separate research trips (during the summers of 1994-96) were taken to Europe, particularly the Nordic Countries and Germany and one trip was made to Japan in 1997. THESIS STRUCTURE Chapter one provides the background for the research project and introduces the research 16 problem of an outdated tenure system that is not addressing community needs. The ten objectives of the thesis research are introduced and the methodology is discussed. Chapter two provides a review and analysis of property rights, existing forest tenures, forest resource management and forest tenure holder behaviour (thesis objective one). A brief discussion of the evolution of the existing tenures provides an explanation of how and why they evolved, what they were designed to accomplish and what successes and failures have resulted. A review of the characteristics of current forest tenures is provided, with a particular focus on Tree Farm Licences, Forest Licences and Woodlot Licences (thesis objective two). Of particular interest are suitable tenure (property rights) arrangements which will provide communities with the necessary forest resource management incentives while holding them accountable to the general population of the province. Chapter three addresses the concepts of community, culture, conflict and planning as interrelated concepts (thesis objective three) which are necessary prerequisites to a discussion of forest management and planning issues and community control. British Columbia's communities have experienced a great deal of conflict over the past decade, and a number of controversial provincial government initiatives such as the Commission on Resources and the Environment (CORE), Protected Areas Strategy (PAS) and the implementation of the Forest Practices Code (FPC) have had impacts on the forest sector that have led to some conflict. Chapter four provides a review of community forestry found around the world that is characterized by great variety (thesis objective four). Swedish community forestry is focussed on because of the similarities in land area, population, and socio-economics to British Columbia. While community forestry is extensively practised in many other countries, particularly developing nations, they were not incorporated into the review because of the unnecessary additional complexity resulting from the wide range of cultural, geographic, environmental and socio-economic conditions. Results of a national survey (thesis objective five) are reviewed to provide insight to the level of awareness and 17 interest in, and history of, community forestry initiatives across Canada. The chapter concludes by addressing the role that community forestry can play in integrated planning (thesis objective six). The stages of forestry planning are discussed along with tenures in the context of government policy and market failures. Sustainable development and sustainable forestry are reviewed and special attention is paid to common property. The forms of community forestry that exist in Europe (municipal ownership or control) can be considered a variant of common property. Chapter five discusses the methodology and results of a provincial mail-out survey on community forest issues (thesis objective seven). The results of the provincial survey provide information on the degree of awareness and understanding of the concepts of community forests in British Columbia. The personal interview results, of a stratified sample of mail-out survey respondents, are discussed as are the seven focus groups that were conducted with three stratified samples of respondent mail-out survey communities. Chapter Six begins with an investigation of the issue of employing new or old tenure systems to facilitate community forestry in the British Columbia (thesis objective eight). A review of Dunster's twelve community forestry principles is conducted (thesis objective nine) to determine their relevance. Finally there is the drafting of the characteristics of proposed community forestry tenures for British Columbia (thesis objective ten). Chapter seven summarizes the research findings, discusses research contributions and implications, limitations of the thesis research and its implications for future policy research. 18 C H A P T E R II. P R O P E R T Y RIGHTS, T E N U R E AND F O R E S T R E S O U R C E M A N A G E M E N T O V E R V I E W O F C H A P T E R This chapter addresses the first two thesis objectives.. Thesis objective one is to compile a comprehensive review of the evolution of property rights, tenure and forest resource management in British Columbia and determine what role community forestry played in this. This chapter provides such a review and analysis, and reveals that while community forests have been discussed in the last three Royal Commissions and the Peel Commission, it has only been in the past five years that their potential role in forest management has received significant public and government attention. Thesis objective two is to investigate the characteristics of forest tenures in British Columbia, with a particular focus on Tree Farm Licences, Forest Licences and Woodlot Licences. This chapter gives a brief discussion of the existing tenures, provides an explanation of how and why they evolved, what they were designed to accomplish and what successes and failures have resulted. The eleven elements of a tenure are reviewed with a view to using these elements to construct community forest tenures later in the thesis. The tenure characteristics of Tree Farm Licences, Forest Licences and Woodlot Licences are reviewed in detail. Ideally a community forest tenure would contain suitable tenure (property rights) arrangements which will provide communities with the necessary forest management incentives while holding them accountable not only to the local residents but also to the general population of the province. F O R E S T T E N U R E . Crown forest tenures are the means by which the provincial government transfers timber 19 harvesting rights and forest management responsibilities from the public to the private sector. Ideally, tenures are designed to ensure that public resource management and development objectives are achieved (Haley and Luckert 1990). Collectively, national and international political and economic conditions, along with the tenures in place, can all influence the economic success of the tenure holder, as well as the scale and scope of the harvesting, silvicultural investments and wood processing activities. P R O P E R T Y R I G H T S A N D F O R E S T R E S O U R C E M A N A G E M E N T I N B C Economics addresses the question of resource scarcity. A fundamental assumption of economics is that resources (such as timber, water, minerals, etc.), are limited, or scarce, and that the wants of people are infinite. The limited resources and the unlimited wants lead to a negotiation of how to address the supply of and demand for the resource. There are two approaches to this negotiation process - conflict or cooperation. Societies develop conventions, social rules, norms or more formalized approaches, such as the law, to promote and enforce societal cooperation and to minimize or mitigate conflict. Bardhan (1989) argues, Institutions are social rules, conventions and other elements of the structural framework for social interaction. This framework is taken for granted in much of mainstream economics, and is often pushed so much into the background that many of its central propositions are sometimes stated with a false air of institutional neutrality. We often apply the simple 'laws' of market supply and demand without being fully conscious of the complex of institutions on which contracts in actual markets crucially depend...(Bardhan 1989, 3). Property rights are a social institution which establish the legal ownership to a benefits stream from a resource and specify any limitations as to how the resource can be used, van Kooten (1993) provides a very constrictive definition, arguing that the following four conditions have to be met for a property right to exist and for market transactions to occur efficiently, 1. Property rights must be completely specified. This implies that ownership [who is assigned the 20 rights] is clearly delineated, and that restrictions upon the rights of ownership and penalties for violation of those rights are specified... 2. A property right implies exclusive ownership. This is the right to determine who, if anyone, may use the property and under what conditions... 3. Property rights owners have the right to transfer their property...restrictions on the transfer of property lead to inefficiency - to market breakdown. It is important to recognize that rights are transferred as opposed to just material property. 4. Property rights must be effectively enforced. Without enforcement, a system of property rights cannot be considered useful. If enforcement is imperfect, as it always will be in the real world, then the expected value of penalties must exceed any possible gains a violator can hope to make (van Kooten 1993, 47-48). This is a very narrow view of property rights, particularly part three - which appears to exclude common property and some other property arrangements. Others have argued that a less restrictive set of characteristics can be applied, A property is a valuable characteristic, or a physical object, in which human beings have an interest (or interests). A property right, on the other hand, has the following components: (I) a claim (or claims) to the (pecuniary or non-pecuniary) benefits resulting from the valuable characteristic; (ii) a claimant (or claimants); (iii) social recognition and enforcement of the claim in favour of the claimant(s), who has (have) a right to exclude others from the property; and (iv) a description of contents of the claim, which includes the rights, responsibilities and obligations of the claimant(s), responsibilities and obligations of the excluded groups, and attenuations attached to the property right (Singh 1995, 31-32). Property rights play a key role in market economies, in which individuals are driven to maximize their income (profit) or welfare (utility) through the exchange of goods and services. Prices are the values that are placed on the goods and services. Property rights underlie the value attributed to goods (e.g. value or potential uses of a piece of property) or service (e.g. certified Caterpillar service and repair depot). Property rights and responsibilities in the form of tenure can influence the behaviour of the forestry firms (Luckert and Haley 1989). Tenures are the means by which the government assigns rights to the publicly owned forest land base, Tenure defines rights to property. The provisions embodied in forest tenures can be seen as those which typically govern both parties in a landlord and tenant relationship. But instead of dealing with the usual kinds of landlord-tenant relation - residential or 21 business premises, or agricultural land - forest tenures deal with forests and forest land. They are instruments which define the rights and obligations of those who use the forests and those who own them (Ministry of Forests 1991, 1). Not only the tenure defines the rights and obligations of those who use the forests. Federal and provincial regulation and legislation and administrative practices also have a role which is beyond the scope of this thesis. The tenure is not the entire forest policy, but rather an instrument or vehicle of forest policy, through which the government attempts to achieve a number of policy goals. Tenure vehicles have changed over time attempting to address ongoing or anticipated government goals or concerns. Tenures are often one of the more public elements of forest policy, and address the very public issue of the rights and responsibilities of tenure holders. The Crown, as the forest land owner, attempts to achieve its goals of effective forest and environmental management and socio-economic development. The rights, responsibilities and obligations of the tenure holder are an attempt to ensure these goals are addressed. Tenure holders are granted certain property rights to the forests to enable them to profitably develop the resource, and while doing so, address the public goals. With respect to the any natural resource industry, such as the forest sector, property rights play a key role, Benefits accrue to forest tenure holders from the rights that they hold. Rights allow tenure holders to capture benefits in excess of the costs they bear in meeting their contractual obligations (Luckert and Haley, 1989). A right can be either legally or justly founded. Legal rights have institutionalized executive and/or judicial systems to monitor and uphold them. Rights that are justly founded by custom or usage are not established or directly protected by the legal system, (ibid). Responsibility refers to legal or moral accountability for conduct and obligations to something within one's power, control or management (Random House, 1973). The legal responsibilities of a forest tenure holder are the forest management other requirements (such as the appurtenant mill clause) 22 that they are obligated to meet in order to maintain their tenure or licence to harvest wood. The moral responsibilities are not legally derived or driven and are proposed by other parties or assumed by the forest company or forest owner. This combination of rights and responsibilities will influence the behaviour and decision making of the tenure holder, The legal rights created by tenure arrangements, together with the legal requirements and responsibilities imposed on the tenure holders, jointly determine the extent to which social objectives for public forest land can be met through private sector activities. However, the manner in which private forests are managed by the private sector may not accomplish the objectives that governments pursue on behalf of society (Luckert and Haley 1989, 182) Property rights constitute some of the major policy instruments used by governments to regulate the private sector (Haley and Luckert 1990). This is especially relevant in the case of British Columbia, in which 92% of the province is crown provincial land, 7% is privately owned, and the remaining 1% is federal (Ministry of Crown Lands 1989). Ownership of forested land is even more state dominated, with the Provincial Government owning 95%, the Federal Government owning 1%, and private ownership totalling 4% (Natural Resources Canada, Canadian Forest Service 1996). 85% of the province's land base is forested, with productive forest land in Timber Supply Areas and Tree Farm Licences occupying 45.6 million hectares or 60% of BC's land area (ibid). While the majority of the forest land is publicly owned, all of the facilities for harvesting and processing timber are privately held and operated, leading to a potential for owner-user conflict. This separation of Crown forest land ownership from privately held forestry harvesting and/or processing operations has created a dichotomy of ownership and conflicting social preferences. One of the most important and longest standing policy questions facing governments throughout Canada has been how to effectively transfer timber harvesting rights and forest management responsibilities from the public to the private sector while simultaneously ensuring that public resource management and development 23 objectives are achieved (Haley and Luckert 1990). Public forest resource management and development objectives have evolved over time, and a brief summary of this evolution will now be presented. EVOLUTION OF PUBLIC FOREST MANAGEMENT OBJECTIVES First Nations and Early Settlement The first settlers of British Columbia were the First Nations or Native Indians. Many non- natives hold a popular image of Native Indians that views them as 'Noble Savages', innocent of industrial society and 'living with nature' and not impacting it (Francis 1992). This lack of impact is largely a myth and there is a growing anthropological information base about what activities were carried out. The pre-Columbian landscape, that which existed before the arrival of the Europeans, was very much impacted by First Nations peoples, they, ...not only used their resources but manipulated, impacted and sometimes in a very real sense 'managed' their resources and environment. After Europeans appeared on the scene, most of the historical relationship between native and non-native people was characterized by competition for land and resources (Notzke 1994, 1). ...and their ancestors have harvested, managed and conserved the resources within their territories; governed themselves and the territories according to their laws, spiritual beliefs, and practices; maintained their institutions; exercised their authority; and protected the boundary of their lands (Cassidy 1992, 6). Native resource management had well defined property rights which they claim to have never ceded to the crown. This was explicitly addressed in the case Delgamuukw v. The Queen (ibid). The definition of territories and harvesting and hunting rights extended across Canada and for the Mistassini Cree a modernized form of territory is still used for management purposes (Tanner, 1991). The influence of Native governance has had a profound impact on the evolution of North American democracy, and it is argued that the Iroquois played a key role in the evolution of American democracy (Johansen, 1982). The European settlers in North America brought with them a number of societal beliefs, and one 24 of the core beliefs centred on the role of property rights. These core beliefs were embedded in laws, regulations and societal norms and institutions. The institutional arrangements are of particular interest, Institutional arrangements, which here refer to the conventions that societies establish to define their members' relationships to resources, translate interests in resources into claims, and claims into property rights. These relationships in turn strongly affect resource-use patterns worldwide (Gibbs and Bromley 1989, 22). At the time of early European settlement in British Columbia, the forest seemed to be eternal and much effort was spent in harvesting the trees to stimulate the economy as well as to convert some forested land into farmland (Godwin 1994). Between 1871 (when BC entered into confederation) and 1911 "the number of sawmills increased from 27 to 224...and employment from 393 to nearly 15,400" (Marchak 1983, 33). This forty year period represented a time of great immigration with the population of British Columbia increasing 700% (ibid). A concerted effort was made by the colonies', and later provincial government, to encourage settlement and economic development. The principle policy tools employed by the governments were Crown land grants in the earliest years of settlement, and later by the granting of resource rights without alienating the land, The principle of granting rights to harvest timber from Crown land, without alienating the title to the land itself, was introduced in a Land Ordinance issued in 1865 by the Governor of the Crown Colony of Vancouver Island. This was one year before the colony united with the Colony of (mainland) British Columbia, and six years before the British Columbia joined the Dominion of Canada as a province. Until then, rights to land and resources had been conveyed through outright grants; and while that method continued for several decades thereafter, retention of Crown ownership and provision only of rights to harvest the timber gradually became the cornerstone of the new province's forest policy (Pearse 1976, Al). The Period 1865 -1909 The 1865 Ordinance empowered colonial administrators to issue tenures known as Timber Leases to individuals or companies engaged in lumbering. The scale and scope of these Timber Leases were left to official discretion, and initially the Crown retained no financial interest in the timber (Pearse 25 1976). From 1865 to 1905, the period during which Timber Leases were issued, the government made a number of modifications to this form of tenure, legislation imposed ground rents, maximum terms, royalties, and, for a time, requirements that lessees own and operate sawmills. Significantly, a legislative amendment passed in 1891 introduced cash bonus bidding for leases, a thread of policy which was woven into later tenure arrangements (Pearse 1976, 24). Between 1865 and 1905, three other forms of tenure were devised. In 1888, Timber Licences started to be issued. They were limited to 1,000 acres each and were allocated on a first come first served basis. Designed to meet the needs of independent loggers, Timber Licences eventually became the most common of what were to be referred to as the 'Old Temporary Tenures' (Pearse 1976). In some areas where the quality of the trees was poor, Timber Licences were converted into Pulp Licences, which provided some financial relief from Crown charges. Between 1901 and 1903, the government issued a number of very large Pulp Leases, which were designed to attract investment into the pulp industry (ibid). In 1883-84, a grant of 1.9 million acres of forested land on Vancouver Island was granted to support the construction of the Esquimalt and Nanaimo (E&N) Railway. This was some of the finest virgin timbered land in the province, and is one of the better known 'Crown Grants' that occurred in the early years of settlement. The E&N grant was eventually bought out by a number of individuals and companies, with Canadian Pacific's subsidiary Pacific Forest Products being the holder of a number of grants. A number of other large blocks of land were Crown granted in aid of railway construction, but the land reverted to the Crown with the failure of these enterprises (ibid). The 'Railway Belt' grant of 14.5 million acres to the Dominion Government was made at the same time as the E&N grant, though this land was to support the completion of the transcontinental railroad through British Columbia. As part of the federal land settlement policy, the Dominion government issued 'Timber Berths', which were a forest tenures giving rights to cut the timber without 26 alienating the land from the Crown. These Timber Berth tenures carried royalty and rental obligations, and the holders were obliged to operate sawmills. The 'Railway Belt' was returned to the province in 1930 after almost 50 years under federal control. At the time of the return of this land, the province agreed to honour the outstanding Timber Berths. When Pearse wrote his Royal Commission Report in 1976, there were 105 outstanding Timber Berths covering 164 thousand acres, with each Timber Berth carrying renewable one year terms (ibid). Timber and Pulp Leases, Timber and Pulp Licences and Timber Berths comprise what are commonly referred to as the 'Old Temporary Tenures'. These tenures have largely expired, and by 1976 only one-fifth of the original number remained covering an area of approximately 1.7 million acres (ibid). The forested areas assigned under these tenures is generally high quality virgin timber, and in land areas close to low-cost water and rail transportation routes on Vancouver Island, the lower coastal area and along the CPR mainline to the interior (ibid). Each form of Old Temporary Tenure was designed to meet a particular need, but they all have three main elements in common. The tenures conferred rights to harvest the existing crop of original old-growth, and as this crop was removed, the tenures reverted back to the crown. Second, to maintain their tenure rights, the tenure holders had to pay annual rents (for timber and pulp leases) or renewal fees (for timber and pulp licences and berths). The Crown also obtained royalties from the timber harvested from the Old Temporary Tenures, with the royalty value determined by harvested volume, species, grade and region (ibid). Third, since 1907, timber cut from the Old Temporary Tenure areas has been subjected to provincial export restrictions (ibid). Finally, the Old Temporary Tenures were not able to be transferred without Ministerial consent (ibid). Concern over the alienation of Crown timber lands led to a government decision in 1896 to stop the Crown granting of timberland with all such land remaining with the Crown. Further concerns over lost economic opportunities and employment led to the Timber Manufacturing Act of March 12, 1906. 27 This legislation required that all timber cut on Crown land had to be manufactured in British Columbia (Shelford 1993). This essentially stopped the export of raw logs except for those permitted to be exported under a ministerial permit (ibid). This remains an important part of BC forest policy today. Timber speculation began to increase around 1905. Timber in the United States was being rapidly exploited and loggers began to travel farther north in search of virgin stands. Concerns about exhaustion of the eastern pine forests, the construction of the Panama Canal, and strong lumber markets drove this exploitation of west coast forests (Pearse 1989). Amendments were made to Timber Licences (also referred to as Special Timber Licences) to make them more attractive to speculators, The new licences did not require the licensee to be engaged in logging, to operate a mill, or to cut the timber within any particular time, and until they were logged they were renewable without limit. Meanwhile, the government would receive an annual payment, but the timber would have to be paid for, through royalties which were to be varied from time to time, only when it was cut. Finally, and importantly, the licences were freely transferable (Pearse 1989, 13). The use of these new Timber Licences, which were renewable annually and completely and freely transferable, led to a large increase in timber staking activity. Over a four year period, staked claims rose from 1,500 to over 15,000, a ten-fold increase. While the government welcomed the revenue, concerns grew about the timber commitments being made (Shelford 1993). By 1907, approximately 10 million acres of Crown forest land had become committed under the four forms of forest tenure, with 90% of this being under Timber Licences. The government believed that the volume of timber under tenure would satisfy industry requirements for years, and suspended any further tenure allocations (Pearse 1976). Furthermore, outright land grants were stopped completely in 1907 as a result of public concerns over land alienation and that all the best Crown timber would be fully committed (Shelford 1993). 28 Fulton Commission, 1909-1910 There were numerous small businesses engaged in both the harvesting and processing of the logs, and while many of the businesses were locally owned and staffed, this was by no means always the case, There were hundreds of'gypos' operating in the woods, and they came from all parts of the continent. Americans came in, logged valleys, left denuded lands, and returned with the wealth from their sales of timber to their homes. The history and the folklore of the industry is replete with countless stories of harsh bosses, bad working conditions, a complete lack of regard for the environment or the future forest as small businessmen competed to fell record quantities of timber. The forest seemed then to be endless, and for a time so seemed the markets (Marchak 1983, 33). The forest was not endless, and the markets were certainly not. Growing public concern over the state of the forests and the problems prevalent throughout the forest industry were driven by strong memories of an earlier period when hysteria over another public resource had created significant social, economic and political changes. The timber staking was similar to the earlier gold rush that, ...had precipitated profound political changes in the region half a century earlier. Alarmed by these developments, the government appointed its first Royal Commission of Inquiry into forest policy, which produced the Fulton Report of 1910. With the meagre information available to them, the Commissioners estimated that the province had already alienated two-thirds of its merchantable timber, and after concluding that this would meet the needs of the industry for several decades they prudently recommended that the remainder be held in reserve. To meet minor and special needs, they proposed competitive, short-term timber sales, variants of which are among the most important tenure forms in use today. Many other significant changes resulted from the recommendations of this influential Commission, including the passing of the first Forest Act in 1912, which provided for a provincial Forest Service and embodied the first significant efforts toward forest protection and management (Pearse 1976, 3). The Fulton Commission and its report represented a remarkable change in attitude towards the forests. Until the establishment of the Forest Service there was very little comprehension of the extent or status of the resource. Fulton was the first to recognize the need for a good forest inventory as a basis for responsible management. He also suggested that forest revenue should be treated as, that should be used to manage fire protection, conservation, and the replanting of areas not quickly stocked by natural regeneration. This important recommendation 29 was never accepted. Successive governments have robbed the forest estate and used the revenue for other programs without a twinge of shame at not leaving sufficient money to ensure healthy forests for future generations (Shelford 1993, 25). It was as if everyone believed that the forests truly would last forever and there was no need to pay any heed to what was happening out in the woods, In Canada, unfortunately, conjecture has not yet become tinged with the same hues of certainty. Forest statistics have been, in the immediate past, the wildest guesswork, and even recent revision by the small forest services that have struggled into existence is based upon very little information (Fulton 1910, Dl4). BC's First Forestry Act, 1912 The Fulton Report recommendations were well received and many were incorporated into the first Department of Forests Act, (hereafter referred to as the Forest Act) passed in 1912 (Pearse 1976). The Forest Act created the Forest Service and also introduced new licensing arrangements, with the most important being the creation of the Timber Sale Licence (ibid). Areas of timber that were to be sold were surveyed, cruised and the timber was classified as to quality, species, etc. Timber sales were advertised in the British Columbia Gazette for a minimum of three months and competitive bids were made by way of sealed tenders accompanied by a deposit of at least 10% of the bid price. Pearse notes, In addition to the standard rental and royalty, a successful applicant was obliged to pay to the Crown the appraised upset price determined by the Forest Service and any bonus he bid above the upset price, as well as the costs of advertising, cruising, and surveying. The Timber Sale Licence system grew in importance in the years following 1912 because it was the only means available for disposing of new rights to Crown timber (other than Hand Loggers' Licences). Its use extended well beyond a major device for serving the needs of an expanding forest industry. Until sustained yield policies were introduced in 1948 the Forest Service processed Timber Sale Licences almost without restriction in response to applications, and this form of tenure in its various forms has since become the most important means of conveying rights to Crown timber (Pearse 1976, A7). The Timber Sale Licence introduced another legislative change to forestry in that each licence was subject to special conditions which addressed proper harvesting, protection and forestry practices. 30 The terms of the Timber Sale Licences varied, but the most common term was for two or three years (Pearse 1989). The Period 1912 - 1942 Between 1912 and amendments to the Forest Act in 1947, timber was cut from much of the land that was alienated prior to the Fulton Commission and the majority of this land reverted back to the Crown through timber removal, default on taxes and rentals or for other reasons (Pearse 1976). During the next 35 years, which saw two world wars and the Great Depression, there was little change in tenure policy. By the middle of the 1940s, the only significant method for obtaining new timber rights were through the short-term Timber Sale Licences, a system that was in wide-spread use. By 1945, the Timber Sale Licences accounted for over half of the interior lumber harvested and approximately 25% of the entire provincial harvest (Pearse 1989). While the government had prohibited the transfer of forest land into private ownership, there was no legal way to regulate or restrict the annual timber harvest which had increased significantly. There was also no legislation addressing the restoration and maintenance of the productive capability of logged off lands to ensure a sustainable forest industry, H.R. MacMillan, then one of BC's most influential forest industry executives believed that there was little or no rational forest management in either Canada or British Columbia (Drushka 1995). First Sloan Royal Commission On Forestry, 1943 - 1945 Industry found the system frustrating and considered it inadequate to provide the secure feedstock supply that they required to invest in new processing facilities. This along with concerns about the unbalanced pattern of timber harvesting and inadequate silviculture and forest management (Pearse 31 1976) led to the first Sloan Royal Commission on Forestry in 1943-45. The first Sloan Commission is noted for significant tenure reform and incorporating the concept of Sustained Yield into forest management. Sloan believed that the, ...public interest required such a policy in order to gain maximum advantage from the province's forest resources, and to provide stability to the industry and the communities which depended upon them. Forest land, he [Sloan] proposed, should be managed to produce timber in perpetuity (Pearse 1976, A9). To achieve this, Sloan proposed two new types of sustained yield management units. The 'Private Working Circle' enabled owners of Crown-granted land and old temporary tenures to combine their holdings to which would be added additional Crown timber land. This would, theoretically, create a coherent management unit that would be subject to sustained yield management by industry, with the Forest Service ensuring that public concerns and safeguards were addressed. The second sustained yield management unit was a 'Public Working Circle' that incorporated all provincial crown forest lands not taken up in the Private Working Circles, with the land being managed by the Forest Service and serving the needs of the smaller and unintegrated forest enterprises (Pearse 1976). The government incorporated most of Sloan's recommendations in amendments to the Forest Act passed in 1947 (Pearse 1976). It is interesting to note that Sloan was made aware of timber being harvested in one part of the province and processed elsewhere, resulting in the loss of potential processing employment in communities close to the harvesting area. Such an arrangement had been cunningly devised by MacMillan in order to access some valuable timber near Shawnigan Lake on Vancouver Island and to avoid keeping open the mill that was located there. This was one of the symptoms of an industry that was becoming increasingly more concentrated (Drushka 1995). Beginning in 1942 and throughout the first Sloan Commission, CD. Orchard, the province's 32 Chief Forester, had an agenda to bring about sweeping changes to the provincial Forest Act (Drushka 1995). Orchard proposed a tenure called a Forest Management Licence (FML), which would see the land still owned by the Crown but the timber harvesting rights being sold to a forestry company which would also be subject to reforestation and management obligations. The intent was to open up large tracts of forest land to the companies without either alienating the land from the Crown or having the inadequate reforestation and forestry management practices of the past continue to be the norm. The retention of public ownership of the forest land was a guiding principle in the new forest tenure policy. Orchard emphasized this in a presentation to Sloan in January 1945, It might be argued theoretically that it is the function of the forester to grow the forest crop and that there his interest comes to an end; that harvesting and land tenure need not concern him. Practically, these three fundamentals - land tenure, forest culture, and harvesting - cannot be divorced. You can afford to harvest forest crops from lands held under a one or five or ten-year tenure, but you cannot afford to grow overlapping crops that will take from 50 to 150 years to mature on lands held under anything less than some form of perpetual tenure. How forest lands shall be held, who shall own them, who is to harvest the crop, and how the crop is to be harvested, therefore, are questions of primary importance in any intelligent forest program...the policy of public ownership of forest lands which has obtained in British Columbia up to the present is wise and should be continued (Mahood and Drushka 1990, 107-108). In his Royal Commission report, Sloan made reference to the debate of private versus public forest land ownership, The Licence area is a Tree Farm; who owns it, who manages it, now or in the future, is of secondary importance, provided it is managed with ability, interest, and imagination (Mahood and Drushka 1990, 108). It is unlikely that Sloan anticipated the concentration of corporate control over the FMLs. In his report he makes reference many times to the importance of the forest being managed to address community concerns and the dangers of over harvesting, Areas of reverted land situated in or near settled communities could also be managed on a sustained-yield basis as public working circles by municipal authorities, subject to regulations designed to prevent improvident future management and transactions in relation thereto (Sloan 1945, Q147). 33 Ghost towns in the Interior bear distressing and silent witness to the past policy of too many mills cutting out areas that could have supported in perpetuity, on a system of planned management, the potential capacity of probably half of them (Sloan 1945, Q148). Sloan was sensitive to the growing public concerns of forest industry concentration and control of the resource, with MacMillan Company's controversial purchase of the Victoria Lumber and Manufacturing Company in 1944 undoubtedly giving him pause to think. He directly addressed this in his final public session, The position [MacMillan takes] is that this is our timber, and we propose to do what we like with it. There is no law in the country to prevent me from buying a mill, closing it down, and disposing of my timber as I see fit. That is the privilege the buyer has. Now should the present state of the law be continued from the point of view of an economic policy is a question including many factors. Should a small community suffer because of modern trends concentrating industries in large cities - that is something to be considered (Drushka 1995, 246). Sloan also raised concerns over very large scale or regional forest control in his report. These concerns anticipated the potential for conflict between regional and local forest planning concerns and needs, and the potential for local needs not to be met within a system of forest management and control that was ultimately driven by regional needs, I cannot subscribe, with respect, to the suggestion that the entire coast be treated as one working-circle and that the over-all cut be kept within the yearly or periodic increment of that production unit then the whole Coast will be on a sustained-yield basis. If, on the other hand, individual working circles are over cut the Coast will not be on a sustained-yield basis notwithstandingthefactthattheover-all Coast production remains within the total Coast increment (Sloan 1945, Q148). Mahood and Drushka (1990) argue that Sloan believed that the practice of long-term dedicated forestry found in the private forestry of Europe and the United States would also develop on public land held under tenure. H.R. MacMillan and a number of private foresters opposed Orchard's scheme because of the power over private forestry companies that it provided to the government and especially its Chief Forester CD . Orchard. There was fear that the politicians and bureaucrats would not administer the 34 forests properly (Drushka 1995). This fear appears to have been well founded, as in early January 1947, American Celanese, a New York pulp company with no prior interest in BC, had received a reserve of Timber, for a huge Forest Management Licence in Kenney's [Forest Minister] riding near Prince Rupert. Approval had come from Kenney, apparently with Orchard's agreement, even though the amendment to create the licences had not yet been tabled in the Legislature. Placing the area under reserve prevented anyone else from obtaining timber rights in the area until an FML was granted or refused. In late January, the Celanese group was back in Victoria, this time accompanied by Bob Filberg from Canadian Western, demanding another reserve on prime timber lands on the islands in Johnstone Strait, between northern Vancouver Island and the mainland. The timber in this area was of critical importance to market loggers and the independent mills to whom they sold. The delegation was turned down, but Filberg later returned with another US company, Crown Willamette, and was granted a reserve on the area (Drushka 1995, 277-78). 1947 Forest Act On April 3, 1947 the amendmentto the Forest Act was passed and Forest Management Licences became the only means by which the forest companies could enter into management arrangements on Crown Land and access the Private Working Circles. In 1948, an amendment was made to the Forest Act to introduce the Farm Woodlot Licence. This forest tenure was to provide sufficient crown forest land to farmers to yield a maximum of ten thousand cubic feet per year, including that timber harvested from the farmer's private land. The licence was intended to provide timber for winter harvesting employment to the farmers and to encourage management of their timber lands. The licence was not transferable and was subject to stumpage. It was a good idea which did not prove to effectively work in practice (Ainscough, 1974). The Period 1948 - 1955 In time, FMLs were to be known as Tree Farm Licences (TFLs). Initially the FML/TFLs were given perpetual terms, to reflect the belief that a long term tenure was essential to provide an incentive for forest management. Those issued after 1956 (Second Sloan Commission) were given 21 year terms 35 (Ministry of Forests 1991). Following the Sloan Commission, the forest companies immediately began to submit applications and to begin the process of lobbying and jockeying for FML awards - MacMillan, a critic of the FML system had no choice but to seek awards of the tenures he disagreed with (Drushka 1995). Later that year, MacMillan made a futile attempt to convince Orchard to establish some clear principles for allocating the licences, to replace the arbitrary procedures by which the minister of forests awarded them. It was unclear, for instance, whether more than one application would be considered for a FML on an area placed under reserve (Drushka 1995, 279). The award of Forest Management Licences appeared to have been a fairly arbitrary and controversial procedure, Applications submitted to the Minister were advertised, and sometimes public hearings were held, but the legislation gave unqualified discretion to the Minister to decide how many licences were to be issued, what size they would be, and which of competing applicants would be successful. Although the Crown lands committed under these licences would otherwise have been available for development under Timber Sale Licences, there was no provision for competition for these allocations. Because there were many confl icting applications and no clear criteria governed Ministerial discretion, awards sometimes generated a good deal of criticism from unsuccessful applicants as well as from the independent logging industry which was concerned about its narrowing opportunities to acquire harvesting rights (Pearse 1976, A10-A11). In his 1945 report, Sloan recommended a follow-up Commission in ten years, to which he was subsequently appointed in 1955. In the ten years between the two Sloan Commissions the government had awarded 23 Forest Management Licences, given preliminary approval to 18 and had received applications for a further 28 (Pearse 1976). By 1955, Orchard's and Sloan's visions of a few hundred modestly sized FMLs had not transpired, and there existed a handful of some very large licences, including in some cases land reserved in Public Working Circles that was meant to be managed by the Forest Service to serve the needs of small operators and unintegrated forestry companies (Drushka 1995). 36 Community Forests In The Districts Of North Cowichan And Mission Community forestry, while addressed in the First Sloan Commission, remained a relatively unimportant tenure option, with only two communities, the District of Mission and District of North Cowichan, actively pursuing community forests. Mission had a thousand hectares of forested land which in the 1930's had reverted to the community by tax defaults. To this base, additional crown land was sought, Around 1948, revisions were made to the Municipal Act in BC which allowed the formation of this land into the Mission Municipal Forest Reserve. Starting in 1946, various representations were made to the BC government that Crown forest land within the municipality be turned over to Mission to be managed along with the municipal land. In 1954, after earlier denials by the province, an agreement in principle was reached to turn over this Crown forest land for Mission to manage. Following submission of an appropriate Working Plan, Tree Farm Licence 26 (known as a Forest Management Agreement then) was issued to the district of Mission in 1958 (Allan and Frank 1994, 721). The District of North Cowichan did not pursue a Crown forest tenure - perhaps given their larger land holdings than Mission. In June 1946, the District of North Cowichan incorporated six blocks of municipally owned forested land, totalling 4,800 ha, into a forest reserve under a by-law passed by the District Council. This 4,800 ha of forested land had reverted back to the community as a result of non- payment of taxes during the 1930's and early 1940's (Allan and Frank 1994). The Second Sloan Royal Commission on Forestry, 1955 - 1956 The second Sloan Commission ran from 1955-56 and produced a report in 1956 that addressed primarily administrative concerns. While it was longer than the report of a decade earlier, its recommendations were not nearly as far-reaching (Pearse 1976). In his second Royal Commission, Sloan continued to support the FML/TFL tenure type. He was harshly critical of the more than two million acres of forest land that had been cut down and left in a Not Satisfactorily Restocked (NSR) state, and noted that most of this derived from Timber Sales 37 administered by the Forest Service, that carried no reforestation requirement. As Fulton had in the first Royal Commission, Sloan made strong recommendations that all cut over forest land be restocked and that young growth be protected from fire (Shelford 1993). Sloan was also growing increasingly aware of the corporate concentration and was cognizant of the importance of competition in the industry in order to determine the true value of the forests (Shelford 1993). This indicated a growing awareness of how fewer companies were controlling a larger volume of the harvest and was to be a concern that Pearse addressed in his Royal Commission in 1974- 76. Sloan arguably contributed to the corporate concentration though the creation of the Private Working Circle to which the larger and integrated companies could contribute their private and Old Temporary Tenure Land that would be combined with additional Crown land to create a sustained yield management unit. The non-integrated mills and independent loggers did not have the land base (either private or through tenure) to be eligible to access this additional Crown land. Similarly, the appurtenant mill clause, requiring a mill for processing the timber harvesting off an FML/TFL, was not something that the independent operator could provide in order to be awarded an FML. It was during the second Sloan Commission that R.W. Sommers, Minister of Forests, was first accused of accepting bribes in the award of licences - particularly in the award of FML # 22 to BC Forest Products (Garner 1991). Sommers and another man by the name of Wilson Gray were later to be sentenced to five years in jail (Drushka 1995). The Period 1956 - 1974 In the decade following the Second Sloan Report, the government awarded twenty more Tree Farm Licences. Since that time, a number of them have amalgamated. Initially, in fact for the twenty years following the second Sloan Royal Commission on Forestry, 38 timber from the Public Working Circles (or Public Sustained Yield Units (PSYU) as they were later to be called) was accessed by Timber Sale Licences. The Timber Sale Harvesting Licence (TSHL), which evolved from the Timber Sale Licence, was introduced in the mid-1960s. This was a volume based licence with a specified annual harvest rate from within a designated PSYU. The first TSHLs carried terms of 21 years, but after the first 15 TSHLs had been issued, a term of ten years became the standard (Ministry of Forests 1991). The TSHL was to evolve into the modern day Forest Licence. In the 1960s another tenure called Pulpwood Harvesting Area Agreements (PHAs) were introduced (Pearse 1976, Marchak 1983). The first PHA was signed in 1962 (Pearse 1976). These were designed to supply pulp mills with pulp logs. PHAs gave the holder the right to harvest pulpwood from within its boundaries which included several PSYUs. In fact, the right was rarely, if ever exercised, due to an adequate supply of sawmill residues. There were efficiencies that could be realized by having all logs (saw and pulp) harvested by the same operators, with the sawlogs recovering any dimensional wood and all residue and chips being directed to the pulp mills - the 'chip direction' policy (Ministry of Forests 1991). The Royal Commission On Forest Resources (Pearse Commission), 1974 - 1976 Concerns about forest tenures and their policy implications and the ability of the forest service to administer an ambiguous and confusing public policy (Marchak 1983), along with concerns about the state of the forests and perceived timber shortages were some of the issues that led to the establishment of the Royal Commission on Forest Resources in 1974. It is noteworthy that the state of the forests and perceived timber shortages were the same concerns that led to the previous three Royal Commissions being held and would indeed be the primary reasons for the future Peel Commission. Peter Pearse, a University of British Columbia economics professor was the sole commissioner for what was to be called the Pearse Commission. This two year commission recommended major 39 revisions to the tenure system and addressed a number of issues including, but not limited to: • the emergence of problems related to the protection of the natural environment; • concerns about continuing corporate concentration in the forest industry; • the need to anticipate the transition from old growth to second growth and deal with the 'Fall Down Effect'; • the need to address the increasing governmental and public interest in the development of the forest industry; • the growing need for an expert and efficient public forest administration; • the need to improve the forest tenures that had successfully established the forest infrastructure and which now needed to be modified to address more comprehensive forestry and not just the conversion of old growth into managed second growth; • the need to modify forest tenures to address 'non-industrial values' (Pearse 1976). The Pearse Commission made a number of recommendations to address tenure reform and there was obvious interest and support in smaller tenures and community forestry. Pearse recognized the power of tenures, The government's freedom to chose among alternative forms of rights offers one of the most powerful means of shaping the development of the forest industry. Because I want to emphasize the impact of tenure arrangements on the structure of the industry, and hence the need for a deliberate policy to achieve the public objectives, I offer some general suggestions for selection among the various licensing arrangements... (Pearse 1976, 115). Following the submission of the Commission report in 1976, a Forest Policy Advisory Committee was struck to deal with implementation of the recommendations. The NDP government lost the election that year and the Social Credit Government failed to implement most of Pearse's recommendations. The 1978 Forest Act A number of forestry practice recommendations were adopted leading to new forest and range legislation in 1978 as well as a new Ministry of Forests Act, 1978 (Ministry of Forests 1991). This Act established explicit goals for the Ministry of Forests and recognized for the first time, forest values other than timber and range as elements of the ministry's mandate (Haley and Luckert 1998). There were also 40 decisions made that flew in the face of the Pearse recommendations - such as not amalgamating the Wildlife Branch into the Forest Service. The new legislation brought substantial changes to existing licence agreements and additional new licencing agreements were introduced (Robinson 1995). The early TFLs lost their perpetual term, and all were replaced without competition (ibid). 'Evergreen' replacement provisions were introduced for Tree Farm Licences. This involved updated conditions being offered to the TFL holder every ten years (later changed to five years), and if they chose to accept the new conditions, the licence was replaced with another 25 year term. If the TFL holder did not accept the new conditions, or chose not to apply for replacement, they could retain the TFL under the original terms for the balance of the 15 years remaining in the term, at which point the licence expired. The PSYTJs (originally called Public Working Circles) were reorganized and renamed Timber Supply Areas (TSAs), of which there are now 35 in the province. An annual allowable cut was assigned to each and apportioned to the various types of new licences on a prorated basis determined by the former licence agreements (Ministry of Forests 1991). A number of new licences were introduced to address harvesting in the TSAs, including: 1) Forest Licences which replaced the Timber Sales Harvesting Licences and Timber Sales Licences. It should be noted that the Forest Licence also replaced the timber sale licences that had been earlier awarded as 'Third Band Sales' whose purpose was to improve timber utilization; 2) Pulpwood Agreements replaced the Pulpwood Harvesting Area agreements; 3) Timber Licences replaced the Old Temporary Tenures that had remained in good standing, many for over 90 years; 4) Woodlot Licences, replaced the Farm Woodlot Licences and enabled a broader spectrum of entrepreneurs to combine private land with additional crown land in order to have a larger and theoretically more economic forest base to manage. Woodlots can be awarded without a private land component. The contribution of private land is one of the three main factors considered in the awarding of a Woodlot Licence, the other two being the management intent and the skill and experience of the 41 applicant." Restricted to 400 ha on the coast and 600 ha in the interior, the Woodlot Licence is essentially a miniature TFL, but with different conditions for award and with different policy objectives; 5)The Small Business Forest Enterprise Program (SBFEP) was established. The objective was that a portion of the allowable cut would be competitively awarded to two classes of non-quota holders (operators with no access to long-term crown timber supplies), those with sawmills and those without (Robinson 1995). Today the SBFEP accounts for approximately 15% of the provincial AAC (Haley and Luckert, 1998). Following the passage of the new Forest Act in 1978, the forest industry in British Columbia continued to expand and the provincial Annual Allowable Cut continued to increase, driven by large increases in the interior cut (Travers 1993). Poor economic conditions in the early 80's led to a government decision to introduce 'sympathetic administration' in which standards were relaxed and sometimes ignored in order to foster a more favourable operating climate. This resulted in reduced forest management quality and from 1982 to 1987, it cost the government $1.1 billion more to administer the forests than it received in revenue (Gamer 1991, Travers 1993). Forestry And Sustainable Development Sustainable development became a public consideration with the publishing of Our Common Future in 1986. The World Commission on Environment and Development was set up as an independent body by the United Nations in 1983. The commission's role was to re-examine the critical environment and development problems on earth and to formulate realistic strategies to attain the development goals without creating unacceptable environmental tradeoffs not only to the current planetary residents but also future generations. Forestry, being a renewable resource, came under much public scrutiny. There was increased public concern and discussion about the relationship between current forest management and future forestry opportunities. There was increased understanding of the issues of access, cost and benefits, "Waters 1997 42 ...physical sustainablility cannot be secured unless development policies pay attention to such considerations as changes in access to resources and in the distribution of costs and benefits. Even the narrow notion of physical sustainability implies a concern for social equity between generations, a concern that must logically be extended to equity within each generation (The World Commission on Environment and Development 1986,43). There was also concern about developmental impacts on ecosystem complexity, Development tends to simplify ecosystems and to reduce their diversity of species. And species, once extinct, are not renewable. The loss of plant and animal species can greatly limit the options of future generations; so sustainable development requires the conservation of plant and animal species (The World Commission on Environment and Development 1986, 46). Widespread discussion about how sustained yield did not equate to sustainable development occurred and a paradigm shift in forestry thinking began, One way to look at the relationship between biodiveristy and sustainability is that biodiversity provides enduring options for sustainable management. As Leopold (1949) noted, "to keep every cog and wheel is the first precaution of intelligent tinkering." Particularly when the future is unpredictable, as it surely is now with human population growth, irrational energy policies, climate change, ozone depletion, and other global problems, it makes sense to maintain as many options as possible. A landscape with a great diversity of habitats, species and genotypes is likely to be more adaptable to change than is a monoculture. A most important question we must ask with regard to sustainablity is what do we wish to sustain and why? This is essentially an issue of goal setting. We need to pay more attention to where we wish to head with our land management programs and to what values are behind those objectives. It our goal is only to maintain an approximately even flow of wood products, then we have a seemingly easier task than if we have to worry about sustaining the food webs and nutrient cycles that maintain soil productivity. Of course, in the long run we must think about maintaining soils and ecological processes if we want a sustained yield of wood products. Maintaining watershed integrity may require even more restraint (Noss 1993, 19). The softwood tariff dispute with the United States, with its origins in the early 1960s, was ongoing at this time (Mitchell-Banks 1986). Historically, the Council of Forest Industries (COFI) had served as the negotiator for the British Columbia forest industry, but this time the provincial government decided to usurp their role and enter into negotiations directly. As this was an international matter, the Canadian government were also involved. In 1986, a Memorandum of Understanding was agreed to, 43 which saw Canada agreeing to collect a 15 percent export tax, with the tax being collected until the provinces increased their stumpage by an equivalent amount (Robinson 1995). The provinces did adjust their stumpage systems to collect an equivalent amount in lieu of the duty, and there was an increasing demand to simplify the complex stumpage appraisal system. The provincial government made an amendment to the Forest Act which saw the Comparative Value Timber Pricing System replacing the Residual Value System for stumpage appraisals (Sterling Wood Group Inc. 1990). Another Forest Act amendment transferred the cost of reforestation and basic forestry12 onto the major licensees (TFLs and FLs). This was a government policy to place greater responsibility on industry for returning logged forest land to forest production (ibid). In 1987 and 1988, the allowable cut of all major licences was reduced by 5% with the volume transferred to the SBFEP. In 1988, a licence transfer penalty was introduced which took back 5% of the volume of most licences, each time the control of these licences changed, with the take back volume being directed toward the SBFEP (Robinson 1995). In 1989, the Canadian Forest Service commissioned Environics Research Group Limited to conduct a public opinion survey on forestry in Canada. Numerous questions were asked of the public, with all provinces, various community sizes and income groups being interviewed. One of the strongest results was that 51 % of the Canadian public felt that the harvesting rate was too high, with the BC public response being slightly higher at 52% (Environics Research Group Limited 1989). The Canadian Council of Forest Ministers held aNational Forum oh "Sustainable Development 12Basic Forestry involves the the minimum amount of silviculture required to ensure the renewal of the timber crop to maintain long-run sustained yields. This involves planting seedlings or ensuring that natural regeneration attains the free-to-grow stage at which point the new crop becomes the responsibility of the Ministry of Forests. At times some brushing and weeding activity is required to ensure that the seedlings reach the desired height within the license green-up (restocked) time requirements. 44 and Forest Management" in February 1990. The Honourable Charles W. MacNeil, Chairman of the Canadian Council of Forest Ministers provided the opening address, and he discussed the purpose of the forum, Our objective during this forum, is to encourage an exchange of views and develop a consensus on what sustainable development means for forest management, and to outline an action course for its achievement. To arrive at that consensus, a wide range of issues will be discussed (MacNeil 1990, 3). Numerous speakers addressed the concept of sustainable development, but the discussion was characterized more by questions than by answers. The closing remarks of the Honourable Frank Oberle, Minister of Forestry for Canada are telling, I admit we have a long way to go before we achieve applied sustainable forest development, whatever that means. But the process has begun (Oberle 1990, 45). The Forest Resource (Peel) Commission, 1989 -1992 Growing public concern over the state of the forests, the concentration of harvesting rights and processing facilities in the hands of the major forest companies and a move by the Government in 1989 to convert Forest Licences into Tree Farm Licences led to a strong public backlash. There was growing discontent with the Ministry of Forests and the Honourable Dave Parker, then Forest Minister, suggested the establishment of a permanent Forest Resource Commission. The Peel Commission was established in 1989, and while it only lasted three years (being struck after the NDP were re-elected in 1992), it addressed a number of issues including, but not limited to (Forest Resources Commission 1991): • integrated land management for all users; • native land claims (it was clear that the people felt there could be no land-use strategies drafted without resolution of these problems); • the need for public participation and local input in joint management decisions; • the need for better inventory for all forest users; • concern for the environment; • education not keeping up to the realities of life and needs for the future; • concern for large companies dominating the industry; 45 • a desire for smaller clear cuts or none at all; • wilderness; • restrict the use of herbicides; • more Woodlots; • more community forests and other new alternative tenures • an increased level of coordinated land use planning • more logging determined by silviculture concerns. The Peel Commission made 108 recommendations (Forest Resources Commission 1991). The most important of these resulted in: 1. the establishment of the Commission on Resources and Environment (CORE) and its attendant legislation that addressed coordinated land use planning; 2. the implementation of the Timber Supply Review (TSR) process that inventoried all of BC's Crown forest land; 3. the implementation of the Forest Practices Code (FPC) and its attendant legislation; 4. the implementation of the Protected Areas Strategy (PAS); 5. the establishment of Competitive Sort (Log) Yards to determine the value of logs. The Peel Commission made a number of specific recommendations regarding tenure reform, which though not implemented presented a strong argument for small tenures and community involvement. The recommendations addressing smaller tenures and community involvement were as follows: • Recommendation 4: "that public involvement be set out in legislation and cover all aspects of the planning process" (Forest Resources Commission 1991, 10); • Recommendation 46: "the Allowable Annual Cut freed up in (45) [refers to recommendation 45 which recommends that manufacturing facility owners only have 50% of their fibre requirements met under tenure] either be managed by the Forest Resources Corporation or reallocated to small area-based tenures managed by communities, Native Bands and Woodlot operators, etc. These small tenures will be restricted to those who do not own or control processing facilities" (ibid, 19-20); • Recommendation 68: "category 1 and 2 of the small business program be phased out as the new tenure system is introduced. As wood then becomes available, it should be reallocated to small, non-processing area-based tenures managed by Woodlot operators, communities, Native Bands, etc. or managed by the Forest Resources Corporation as appropriate" (ibid, 25); • Recommendation 108: "all major areas where public participation is required in the planning and management of forest land based activities be enshrined in legislation" (ibid, 40). The Peel Commission findings were distributed throughout the province and subject to review 46 and commentary. The proposals for comprehensive land use planning and improved inventories were less controversial than the establishment of a Crown corporation to manage the province's commercial forests (Haley and Leitch 1992). The greatest concern regarding the Commission and its findings is that it lacked the cohesive force of clearly defined goals for the provincial forests and related industries, and the absence of clear goals and strategies for the development of the province's forest products manufacturing sector (ibid, 55). Forest Licences Awarded to Communities, 1995 - 1996 The BC government, while appearing to renege on promises of tenure reform made in 199513, are taking some steps to address the public interest in community forests. There have been a number of announcements of non-replaceable Timber Licences targeted for communities, with one involving approximately 80,000 cubic metres of reserve wood that was made available for two community forest licences and replaceable forest licences to generate employment within the Kootenay Lake Timber Supply Area (TSA) (Creston Valley Advance [Creston, BC], 2 January, 1996). In September 1996, a Memorandum of Understanding was signed between the Islands Community Stability Initiative (ICS1) and BC Ministry of Forests in which a volume of wood was committed to be redirected towards a community tenure(s) on the Queen Charlotte Islands (ICSI and BC Ministry of Forests, 1996). Details on existing forests (both areas and timber volumes) managed by communities can be found in Appendix A. 13Petter 1995 47 Community Forest Initiatives 1997 - 1998. In July 1997, the report Forests in Trust: Reforming British Columbia's Forest Tenure System for Ecosystem and Community Health by Cheri Burda et al. of the University of Victoria was released. This study explores, ...alternatives to the current management of forest resources that can achieve both ecosystem protection and long term community stability. The report's findings and recommendations are predicated on maintaining forest ecosystem health as the enabling context for all resource activities (Burda et al. 1997, vii). The Forests in Trust report argues that, Opportunities for local, small-scale forestry in BC include the Woodlot Licence Program, the Small Business Forest Enterprise Program and community controlled tenures. The legislative framework which is oriented to large-scale timber production, and based on centralized management, limits these opportunities (ibid, vii). The Forest in Trust report argues for the need for eco-system based forestry and community tenures and that ecosystem-based community management is the goal that should be pursued. The primary policy initiative to achieve this would be establishing the Community Forest Trust Act which would be, ...intended to provide a vehicle by which forest lands currently under exclusive Crown control can be shifted into an ecosystem-based "trust" status. The trust would be jointly held by the province and a designated community authority, the latter acting as the permanent trust manager (ibid, xii). This work is valuable in being quite visionary and providing a critique of current forestry management and tenures and raising the issue very successfully on a public and province-wide level. The report was widely read and was discussed in a number of symposia, workshops and conferences including the most recent October 1998 International Workshop on Ecosystem-Based Community Forestry that was attended by 80 people from 20 countries. The report proposes a total of 48 recommendation in three sets or categories: • General recommendations for tenure and policy reform within the basic context of the current legislative and management regime; 48 • Specific recommendations for a comprehensive process to support the transition to an ecosystem-based community regime; • Recommendations to facilitate economic transition based on reduced volumes of timber (Burda etal. 1997, 127). The report sets out a number of well thought out recommendations such as increasing the Woodlot program and designing a community based tenure that have been pursued by the Ministry of Forests to some extent. The report would have been strengthened by increased emphasis on addressing the economic transition that would occur with the recommendations. The report is hampered as it is largely determined by the primary argument of eco-system based forestry (a subject that is controversial in that it is open to widely disparate descriptions) and secondarily by the importance of community control. The two can in fact be totally exclusive. The Jobs and Timber Accord announced on June 19, 1997 represents another government forestry initiative in which, The BC government, industry and all other forest sector stakeholders recognize that if we don't look after our forest, we will not sustain our jobs, communities and environmental integrity. This shared understanding underlies the Jobs and Timber Accord announced on June 19, 1997 (Ministry of Forests 1997a, 1). It is important to note that tenure reform or the concept of community forestry does not fall under the five Key Accord Principles though under the 'General' section of the accord community forestry is addressed, The Government will design and pilot at least three community forest tenures, where AAC is available, to allow resource communities and First Nations (including through joint ventures) to participate directly in managing the forest to create sustainable employment (Ministry of Forests 1997b, 3). On October 22,1997, the BC government announced the establishment of a Community Forest Pilot project being established under the Jobs and Timber Accord. Forest Minister David Zirnhelt in making the announcement, indicated that the government had provided some forest management opportunities in the past through tenures such as forest licences, but that many communities have said 49 that they want more local involvement in forest management and this new initiative shows government has listened and responded (Ministry of Forests 1997c). On December 3, 1997 the advisory committee was appointed with representatives from communities, First Nations, academia, industry and environmental groups (Ministry of Forests 1997d). The committee was required to make the following recommendations by the indicated deadlines, • Initial recommendations regarding the framework of the tenure models to be developed: December 19, 1997. • Final recommendations regarding tenure structure and definition of "community": February 27, 1998. • Recommendations regarding the pilot selection criteria: February 27, 1998. • Recommendations regarding suitable pilot test sites: May 30, 1998. • Recommendations regarding monitoring and evaluation criteria: May 30, 1998 (Ministry of Forests 1997d, 2). The final recommendations of the committee were made in May 1998 and the proposed legislative amendments to implement and pilot community forest agreements were introduced in the legislature on June 16, 1998 (Ministry of Forests 1998, 1). A copy of the committee's Final Recommendations on Attributes of a Community Forest Tenure is provided in Appendix F and the proposed changes (Bill 34) are included in Appendix G. These recommendations and proposed changes are addressed in detail in Chapter VI, the chapter on the design and discussion of proposed community forest tenures. On September 17, 1998, the Ministry of Forests released the Request for Proposals for Community Forest Pilot Agreement document (Ministry of Forests 1998a) and by the January 15, 1999 deadline, 27 communities had submitted proposals for community forests under the pilot program (Ministry of Forests 1999). There have been five forestry commissions in the span of 83 years, and forestry regulation, the understanding of property rights and the use of tenures has changed dramatically. Community forestry has been directly addressed in the last four forestry commissions and was recently actively investigated 50 by a Ministry of Forests appointed committee. The concept of community forestry has existed in the public policy realm in British Columbia since 1943 when it was raised in the First Sloan Commission but only within the last five years has it started to become a high profile issue to investigate. This lag in government interest or action on community forest might be attributed to a number of factors including: • the lack of a provincial-wide concern regarding timber supply and community stability until the last two decades; • the powerful lobby of forest companies and indeed the Ministry of Forests who have wanted to retain control over the forest resource; • The lack of organized lobbying by communities for community forests - the involvement of the UBCM in lobbying for community forests is a relatively new focus over the last three years; • The lack of faith on the part of the government that communities can manage forests - this has been strongly demonstrated in a number of meetings between the author and a number of government officials; Community forestry as with any forestry on Crown lands involves a tenure and a review of tenure is necessary. CHARACTERISTICS OF FOREST TENURES. British Columbia is currently experiencing a number of public policy failures within the forestry sector, including: • silviculture that meets minimum legislated standards rather than being optimal for each site - the Innovative Forest Practices Agreements are exploratory efforts to address this; • forest management that has historically focussed on harvesting and conversion of old growth stands to second growth. This has precipitated the 'fall down' effect and created a managed forest with reduced biodiversity and concerns about the ecological integrity and ecological health; • inadequate management of non-timber values - with the Forest Practices Code and the Protected Areas Strategy attempting to address this; • a non-competitive provincial market for logs as a result of the tenures. The Vernon log yard, amongst others, was established in response to one of the Peel Commission recommendations (#47) addressing this lack of competition; • and a divergence of intentions or planning concerns between the Ministry of Forests, the forest indu